Baar-Zug, Switzerland / Mumbai, India, February 22, 2024
Blue Earth Capital AG (“BlueEarth”), the specialist global impact investor, today announces its investment in Nepra Resource Management Pvt. Ltd. (“Nepra”), India’s leading dry waste management company and a pioneer in promoting a circular economy in the country. The transaction has been done in partnership with leading India-based impact investor, Aavishkaar Capital (“Aavishkaar”).
BlueEarth, through its investment vehicles, has acquired a significant minority shareholding in Nepra from Aavishkaar India II Company Limited (“AICL II”), an investment vehicle managed by Aavishkaar. This transaction provides a full exit to AICL II, an early investor in Nepra. Aavishkaar continues to be invested in Nepra through its Aavishkaar Bharat Fund. BlueEarth has invested in Nepra through a structure that enables Aavishkaar to continue, and build on, its long-standing relationship with Nepra.
Headquartered in Gujarat, India, Nepra has scaled significantly since its inception in 2011 and now operates a network of Material Recovery Facilities (MRF) and Value-Added Facilities (VAF) across four states in India. Its largest MRF in Indore has enabled the city to be ranked as the cleanest in India for six consecutive years [1]. The company has delivered strong climate impact by mitigating 460 thousand tons of CO2e emissions through its waste recycling activities. Nepra has also had a positive social impact by working with 1,900+ waste pickers.
This investment addresses a clear climate challenge. Unprecedented levels of urbanization in India combined with a growing population have resulted in a significant increase in consumption, and subsequently, waste generation. Annual material consumption in India has increased from 1.2 bn tons (in 1970) and is expected to reach c.14 bn tons by 2030 [2].
This investment marks BlueEarth’s first climate-focused Private Equity impact investment in India. It aligns with the firm’s thesis of partnering with market-leading companies that are delivering significant climate impact, including the creation of a circular economy.
Rohan Ghose, Director of Private Equity Partnerships at BlueEarth, commented: “We are delighted to invest in Nepra and to support the company’s continued growth journey. We believe that responsible waste management is not only vital for environmental stewardship but also presents a significant opportunity for economic growth and societal benefit. We also look forward to delivering value through our strategic collaboration with Aavishkaar Capital which underscores our commitment to fostering sustainable practices together with leading fund managers.”
Anurag Agrawal, Partner at Aavishkaar Capital, added: “Aavishkaar Capital has been a strong partner to Nepra in its value creation journey, coming in as the first institutional investor and reposing faith through further investments. BlueEarth’s investment is a testament to the company’s success in delivering significant outcomes in its ‘Zero Waste to Landfill’ motto, while creating meaningful impact to the numerous stakeholders to the dry waste management value chain. We look forward to working with BlueEarth in the next phase of Nepra’s growth trajectory.”
Sandeep Patel, CEO of Nepra, added: “Nepra has been a pioneer in India’s dry waste management ecosystem and has built very strong digital transformation tools and state of the art infrastructure to enable Inclusive Circular Economy and ‘Zero Waste to Landfill’ models. Along the journey, we have created positive climate outcomes, while also enhancing the lives of thousands of people, including waste-pickers. We are grateful to Aavishkaar Capital for consistently backing us since the beginning and look forward to BlueEarth’s support as we become the global leader in climate action.”
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Notes for editors:
About Blue Earth Capital
Blue Earth Capital is a global, independent, specialist impact investor, headquartered in Switzerland, with operations in New York, London, and Konstanz. Blue Earth Capital seeks to address the world’s most pressing social and environmental challenges by delivering measurable impact alongside aiming for attractive and market-rate financial returns. The company operates dedicated private equity, private credit, and fund solutions. Blue Earth Capital is owned by the Blue Earth Foundation, a Stiftung (charity/trust) registered in Switzerland that focuses on deep impact to support initiatives and business ventures to help deliver a more equitable and sustainable future.
About Aavishkaar Capital
Aavishkaar Capital is an Impact fund manager focused on the Global South. A pioneer in taking an entrepreneurship-based approach to scaling businesses for impact, Aavishkaar Capital’s unique approach has resulted in its invested enterprises impacting over 130 million lives. Aavishkaar Capital invests high environmental and social impact sectors across India, Emerging Asia, and Africa. Aligned to 13 out of the 17 Sustainable Development Goals, Aavishkaar Capital has successfully raised eight funds, while generating commercial returns with over c.$ 555 million in assets under management.
BlueEarth media contact
Kekst CNC
Simon Markebeck
Email: Blueearthcapital@kekstcnc.com
Aavishkaar investor relations contact
Kanishka Dasgupta | Sudhanshu Dikshit
Email: media@aavishkaar.in
[1] According to the Swachh Bharat ranking, as per the Indian Ministry of Housing & Urban Affairs, via Press Information Bureau, Government of India (2022).